Page:United States Statutes at Large Volume 124.djvu/1789

 124 STAT. 1763 PUBLIC LAW 111–203—JULY 21, 2010 clearing requirement under subsection (a)(1) shall apply to the submission. ‘‘(3) DEADLINE.—The Commission shall make its determina- tion under paragraph (2)(C) not later than 90 days after receiving a submission made under paragraphs (2)(A) and (2)(B), unless the submitting clearing agency agrees to an exten- sion for the time limitation established under this paragraph. ‘‘(4) DETERMINATION.— ‘‘(A) In reviewing a submission made under paragraph (2), the Commission shall review whether the submission is consistent with section 17A. ‘‘(B) In reviewing a security-based swap, group of secu- rity-based swaps or class of security-based swaps pursuant to paragraph (1) or a submission made under paragraph (2), the Commission shall take into account the following factors: ‘‘(i) The existence of significant outstanding notional exposures, trading liquidity and adequate pricing data. ‘‘(ii) The availability of rule framework, capacity, operational expertise and resources, and credit support infrastructure to clear the contract on terms that are consistent with the material terms and trading conven- tions on which the contract is then traded. ‘‘(iii) The effect on the mitigation of systemic risk, taking into account the size of the market for such contract and the resources of the clearing agency avail- able to clear the contract. ‘‘(iv) The effect on competition, including appro- priate fees and charges applied to clearing. ‘‘(v) The existence of reasonable legal certainty in the event of the insolvency of the relevant clearing agency or 1 or more of its clearing members with regard to the treatment of customer and security-based swap counterparty positions, funds, and property. ‘‘(C) In making a determination under subsection (b)(1) or paragraph (2)(C) that the clearing requirement shall apply, the Commission may require such terms and condi- tions to the requirement as the Commission determines to be appropriate. ‘‘(5) RULES.—Not later than 1 year after the date of the enactment of this section, the Commission shall adopt rules for a clearing agency’s submission for review, pursuant to this subsection, of a security-based swap, or a group, category, type, or class of security-based swaps, that it seeks to accept for clearing. Nothing in this paragraph limits the Commission from making a determination under paragraph (2)(C) for secu- rity-based swaps described in paragraph (2)(B). ‘‘(c) STAY OF CLEARING REQUIREMENT.— ‘‘(1) IN GENERAL.—After making a determination pursuant to subsection (b)(2), the Commission, on application of a counterparty to a security-based swap or on its own initiative, may stay the clearing requirement of subsection (a)(1) until the Commission completes a review of the terms of the security- based swap (or the group, category, type, or class of security- based swaps) and the clearing arrangement. Deadline.